There has been so many differing opinions on what to do with your money in EPF acc 3. Some say maintain the split, some say change. Some withdraw, some will keep. So after pondering on these options for some days, here are my honest thoughts:

1. Should you maintain the split of 70/30 for your existing fund or opt for initial amount transfer to Acc3? EDIT: To clarify, all future contributions will be 75/15/10 split, this is an option for your EXISTING FUND.
Answer: Best option - Regardless of your financial condition or whether you plan to withdraw, just opt for initial amount transfer. This is because no matter what, the dividends are the same across all 3 accounts. In future, if epf reduce the dividend for acc3, you still can move back to the other accounts. You may have plenty of emergency funds, you swore not to touch epf money but you never know what will happen in the future. Keeping the initial funds in acc3 allows you to use it for your emergency funds.

2. Should I withdraw the money in Acc3?
Answer: This very much depends on what you PLAN to do with your money. So I break it down in questions below.

3. Should i withdraw to close my bad debts - eg. Credit card loan, personal loan, etc.
Answer: YES. As these loans have higher interest rate than epf, then you should withdraw.

4. Should i withdraw to reduce my housing loan balance?
Answer: NO. Your housing loan interest is only 4.x%, and historically epf had been giving 5-6% of dividends, so mathematically you should keep it in epf.

5. Should i withdraw to put in ASB/ASM/Tabung Haji and the likes?
Answer: NO. These funds have been giving lower returns than epf especially in the last decade.

6. Should I withdraw to put in Bursa/S&P500?
Answer: Mostly NO, YES for some cases.
Before you withdraw for this purpose, ask yourself: Do you have extra funds in FD , ASB/ASM etc? So rather than using epf money , you should be withdrawing the other funds that are giving you lower returns.
Generally, epf is a SAFE funds. Withdrawing it to use in the stock market is high risk. You could lose money if you are not careful. So unless you are a seasoned investor and is absolutely sure that you can make money, then yes you can withdraw. But, if you are that good, do you still need epf money?

7. Should i withdraw the money to buy car/overseas vacation/iphone/etc?
Answer: YES. If you need epf money to get these things, then you are hopeless. You need the latest iphone to take photo to record how much of a fool you are.

8. Should i withdraw to buy/build/renovate your house?
Answer: Yes. In fact, this is the purpose of Acc2, to allow you to do this. After all, house is an asset, which will appreciate over time. One might opt to get funds from Acc 2+3 for this purpose. Of course, as much as possible you should try to lessen the amount you plan to withdraw.

This post has been edited by Avenger_2012: May 12 2024, 12:39 PM

9. I am concerned that if I move my money to acc3, then when EPF announce lower dividend in future, I would lose out!!!
Answer: I am not working in EPF, so I cannot guarantee my next answer. However, logically- when it happens I believe EPF would allow a grace period for everyone to transfer from Acc3 to Acc1/2 or withdraw it out. EPF can’t suddenly just announce a lower dividend for Acc3 then expect it to take effect immediately- people will be rioting.

This post has been edited by Avenger_2012: May 12 2024, 12:44 PM

RtK b40
just let it sit in acc2

Question 1 is tricky. I always wanted to ask but don't know how to get OFFICIAL answer. Dividend will surely drop in the future. No way it's going to stay the same forever.

So my question is:
1) Is there any limits when transferring from acc3 to acc2.
2) When they do announce drop in dividen, do we have enough time to transfer EVERYTHING from acc3 to acc2. How will the dividen be counted? Average fund over the year or the balance of the month before dividen is paid or how.

For people who control their financials well, I guess the safest is still to transfer acc3 to acc2 monthly and make sure acc3 is 0 every month? They better make it possible to do this easily from the app.

This post has been edited by GymBoi: May 12 2024, 03:04 AM

7. Should i withdraw the money to buy car/overseas vacation/iphone/etc?
Answer: YES. If you need epf money to get these things, then you are hopeless. You need the latest iphone to take photo to record how much of a fool you are.


pundik
u mook me?
i am piss right nowwwwwwwwwwwwwwwwwwwwWWWWWWWWWWWWWWWWWWWW



btw how to move fund to acc 3?
got no option pun...or not ready yet?

This post has been edited by poco loco: May 12 2024, 04:35 AM

do you know if the transfer to bank account is automated?
or once they allocated your money to your account 3, then you can choose which bank to transfer to?

>or once they allocated your money to your account 3, then you can choose which bank to transfer to?
should be similar to acc2 withdrawal ; but i believe u need to transfer to account that having your own name aka ..cannot transfer to waifu account (not sure on joint account)

if they announced diff rate for flexi account
then yes ..you might burn few days of dividend

because kwsp dividen is based on daily aggr balance

Nv understood the idea of acc3 beyond political expediency

Acc2 allows u to withdraw for medical/housing/educational reasons, what other big life issues that needs u to withdraw your pension?

9 for 36.

9. Withdraw and buy bitcoin!

I feel this is best move but not at this time. But when it’s tanked and then laugh to the bank. Every 4 years rinse and repeat

To some people, colleague bought ipon 16 pro max ultra and these group will loose sleep over it mate. Cannot surrender and pressurise themself

Good thread, tho i dont understand on some words due to never attend financial/account classes in my whole life

Same. I see if I do so, my saving rate is going backward by one year.

Move to invest in s&p, after convert from myr to usd, not even 10k, what to buy.

If you want to invest in s&p, why don't you start investing now. Epf is 100% positive return, s&p can be - 38% in one year. Very different ball game

Thanks to pendidikan moral subject than Finance subject.

If you've done your hw, you wouldn't say this. It'll go past 100k. Wait and see.

Dude if it goes great if it doesn’t rinse and repeat

I have no doubt it can go to even a billion bucks. Same was said for xrp and eth but it never happen

We can only wait

Question 1 is super tricky like some other LYNer said.

Remaining is 70:30
By not doing anything, your money will be 70:30:0

By moving max amount on this one time transfer, it will be 75:15:10. (Notice the Acc 1 locked is increased to 75%)

The issue is ~1 year later when Acc 3 dividend is changed to be less than Acc 1 / 2.


They mention we can transfer Acc 3 to Acc 2 / 1 via “Savings Transfer To Akaun Persaraan/ Akaun Sejahtera Form (KWSP 12)” but didn’t give details of it.

If transfer will cause more amount to be stuck in Acc 1?
Means if you did max transfer and be 75:15:10 to transfer with example 50% each, it will be 80:20:0

Now notice your locked amount until age 55 have increased from 70% to 80%? Previously Acc 2 can withdraw 30% have become 20% if you keep transferring your money around.

if you treat house decor like a hobby, yes, do it. but if it's just a place to sleep, no.
house appreciates over time is not always true. depends on location. and the rate can be extremely slow.

Thanks epf, already applied, planning to all in BTC. Jz joking